Simple Moving Average(SMA) 50-period (red), 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Intraday pivots and Intermediate-term support and resistance
Multiple Time-frame Analysis
- The NZD/USD can be seen in the 4H chart as bearish. The RSI tagged bel0w 30 again, while failing to break above 70. It did break above 60, but that was quickly reversed.
- The main event to look now is the test of support, which starts with the 0.7342 pivot to the 0.74 level. If this support zone is broken, the market has a swing projection to 0.7180.
- As the market remains above 0.71, we could still be bullish in the long term.
- However below 0.71, we can start considering further bearish scenarios.
- The weekly chart shows that the market is indeed breaking below a rising trendline, signaling a change in trend.
- The two scenarios are a reversal, or just a correction.
- The correction scenario should see support near 0.7180 if the 0.7342 does not hold.
- The reversal scenario should would probably see some volatility in the 0.71 - 0.70 zone. Below 0.70, we should target the 0.6560-0.6500 zone.
Will the 0.7342 pivot support the current decline, or will the market follow one of the bearish scenarios? We would love to hear what you think.
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